According to a recent market research report published by Transparency Market Research, the global smart cards market is estimated to expand at a CAGR of 7.4% during the period between 2016 and 2023. The report, titled “Smart Cards Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016 - 2023,” projects the global smart cards market to be worth US$14.17 bn by 2023. The overall market stood at a valuation of US$7.25 bn in 2014.

Smart cards are integrated chip-based cards that store and retrieve information with the help of various computer systems. They contain central processing units and memory units. Smart cards are cost-effective means to store, maintain, and manage credentials of users. As a result, these cards are widely used across various sectors such as BFSI, telecommunications, and government.

The report states that the decline in prices of SIM cards and the increasing trend of migrating to EMV standards has fuelled the adoption of smart cards across various end-use sectors. Rise in data thefts through fraudulent activities has further led to the surging demand for secure and expedited transactions, and identification and communication solutions. These factors have augmented the growth of the global smart cards market. However, initial high cost to migrate to smart card compatible readers will affect the adoption of smart cards. The overall smart cards market has a huge opportunity to grow with the introduction of high-end SIMs.

In terms of types of smart cards, the report categorizes the global smart cards market into contactless smart card, contact smart card, dual-interface smart card, and hybrid smart card. During the forecast horizon, contactless smart cards are expected to lose market share to contactless and other card types. Contactless smart cards offer a technology platform for the addition of new applications to access control systems and facilitate more secured identity verification. Additional security features offered by contactless and dual interface smart cards have led to their increased adoption as e-IDs, ATM/credit/debit cards, transportation IDs, and others. In 2014, contactless smart cards accounted for 18.6% of the market revenue. During the forecast horizon, this card segment is expected to expand at the fastest CAGR of 11.5%.

The report studies the global smart cards market across five key regions: Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific majorly contributed towards the growth of the market in 2014 and held over 47.4% of the overall market revenue. During the forecast horizon, Asia Pacific is anticipated to retain its leading position and emerge as the fastest growing smart cards market. During the period between 2016 and 2023, the region is projected to expand at a CAGR of 7.9% due to growing demand from countries such as South Korea, Japan, China, and India.

Describing the competitive hierarchy, the report profiles some of the key players in the global smart cards market such as Atos SE, American Express Company, NXP Semiconductors NV, Gemalto NV, Infineon Technologies AG, INSIDE Secure, Texas Instruments Inc., and Giesecke & Devrient (G&D) GmbH. In 2014, the global smarts card market was dominated by Giesecke & Devrient (G&D) GmbH, Gemalto NV, and Oberthur Technologies. These three top players held over 50% of the overall market revenue in 2014.

Global smart cards market has been segmented as:

Smart Cards Market, by Type

Contact Smart Cards

Contactless Smart Cards

Hybrid Smart Cards

Dual-interface Smart Cards

Smart Cards Market, by Component

Microcontroller

Memory Card

Smart Cards Market, by Geography

North America

Europe

Asia Pacific

Middle East & Africa (MEA)

Latin America

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